Exactly. The mala tree is just like your windows folder structure, which IMHO results in a clean presentation for the frontend.
The setup is no difficult. Just open the tree editor and start creating nodes (folders) and gamelist (you associate the tree gamelist to an existing one). What might result a bit difficult at first is the name convention for the tree snaps, but the learning curve is small.
Just don't forget to check the "Use Tree" option under the GUI tab (I'm at work now, so I don't recall the exact name of the option).
Hope this helps.
I really love the mala tree, it's a great feature in mala.
Cheers,

Congui.